Following last year’s real estate market was like riding a rollercoaster. The market started off strong in 2018 and then softened before finishing with a mild flurry. However, one thing that did not change was America’s belief that owning a home makes sense from a financial standpoint.
Investing in real estate has many advantages. Properties are tangible goods, which makes them feel more real to investors, unlike the stock market. They are a great source of steady income, short-term cash or a long-term investment that can be passed on from generations to generations.
Real estate investors also have a variety of property types to choose from, single family-homes, apartments, multi-units, commercial or retail space, condos or mobile homes. In addition, investors are not limited to buying and selling with real estate. They can flip a property, rent it, lease it, sell it or add more to their portfolio.
Investing in Real Estate Young
Real estate investors who purchase homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set.
The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-twenties and early-30s had close to $50,000 left, but traditionally had purchased more expensive homes.
As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations.
No matter what type of property you buy or your ultimate goal when investing in real estate, this type of investment will generate consistent income and long-term appreciation for you.
If you didn’t start young, there’s still time. Even if you are new to real estate investing, we are here to help you and we will walk you through every step of becoming a first-time homeowner, investor or landlord.